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201. APEC and the search for relevance: 2007 and beyond

Author:
John Ravenhill, Lorraine Elliott, Helen E.S. Nesadurai, and Nick Bisley
Publication Date:
11-2006
Content Type:
Working Paper
Institution:
Australian National University Department of International Relations
Abstract:
In September 2007, Australia will host the annual Economic Leaders' Meeting of the Asia–Pacific Economic Cooperation (APEC) forum. This will be the culmination of over 100 days of ministerial, official and business group meetings, working groups and dialogues that will be held in various Australian cities from January to August. Fifteen federal government departments will be involved along with a range of other interested actors, predominantly in the private sector. The Australian government will spend considerable sums of money on the leaders' meeting itself, not least to ensure the security of those attending. This will include, if all goes according to plan, the heads of government of 21 countries—member economies in APEC-speak—including the United States, Russia, Japan and China. Security may well be the least of the government's worries. Few would argue that APEC is 'going strong' as a regional economic forum and recent reviews have suggested that at best it faces an uncertain future and that at worst it could be in a state of terminal decline. The forum is argued to have lost its relevance and to have generally been unsuccessful in attaining any of its more ambitious goals such as regional trade liberalisation.
Topic:
Security, Development, Economics, and International Trade and Finance
Political Geography:
Russia, United States, Japan, China, Australia, and Australia/Pacific

202. Intellectual Property Rights as a Key Obstacle to Russia's WTO Accession

Author:
Matthew Ocheltree and Sherman Katz
Publication Date:
10-2006
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Russia has been in the process of seeking membership in the World Trade Organization (WTO) since June 1993. Currently, the United States is the only major economic power that has yet to finalize a bilateral market access agreement with the Russian Federation. Most observers of the situation concur that the enforcement of intellectual property rights laws remains, along with agriculture, one of the two major hurdles to Russian accession to the World Trade Organization.
Topic:
International Relations, Economics, and International Trade and Finance
Political Geography:
Russia, United States, Europe, and Asia

203. Where to Draw the Line on International Assistance to the Palestinians?

Author:
David Makovsky, Michael Herzog, and Elizabeth Young
Publication Date:
03-2006
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
In the immediate aftermath of Hamas's parliamentary victory in late January, the Quartet—the United States, the EU, Russia, and the UN—set clear criteria for funding a Palestinian Authority (PA) under Hamas's leadership. The Quartet said direct funding would be a function of the new government's “commitment to the principles of nonviolence, recognition of Israel, and acceptance of previous agreements and obligations, including the Roadmap.” Indeed, there is no other example of taxpayers subsidizing a government run by an organization that appears on State Department and EU terror lists.
Topic:
International Relations, Economics, and Humanitarian Aid
Political Geography:
Russia, United States, Middle East, Israel, and Palestine

204. Evaluating Targeting Efficiency of Government Programmes: International Comparisons

Author:
Hyun H. Son and Nanak Kakwani
Publication Date:
05-2006
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper suggests how the targeting efficiency of government programmes may be better assessed. Using the 'pro-poor policy' (PPP) index developed by authors, the study investigates the pro-poorness of not only government programmes geared to the poorest segment of the population, but also basic service delivery in education, health and infrastructure. This paper also shows that the targeting efficiency for a particular socioeconomic group should be judged on the basis of a 'total-group PPP index', to capture the impact of operating a programme within the group. Using micro-unit data from household surveys, the paper presents a comparative analysis for Thailand, Russia, Vietnam and 15 African countries.
Topic:
International Relations, Economics, Government, and Poverty
Political Geography:
Africa, Russia, Vietnam, and Thailand

205. Credit Co-operatives in Locally Financed Economic Development: Using Energy Efficiency as a Lever

Author:
Robert J. McIntyre
Publication Date:
02-2006
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
In most transitional and many developing countries institutions capable of supporting economic development with localized saving-investment cycles have not developed. This crucial gap is in no way addressed by either country-level macro programmes dealing with 'development finance' or by donor-driven 'micro credit' schemes of Grameen and other types operating at a lower (local) level. The latter seldom evolve into financial institutions able to sustain themselves on the basis of local resources, do not operate on a sufficient scale to trigger dynamic local-level economic growth, and are ultimately artificial manifestations of concessional or charitable aid. The advantages of credit co-operatives in mobilizing and financing local economic development a contrasted with the disadvantages of both conventional micro credit and the most recent neoliberal fashion of so-called 'new wave financial institutions'. Both precedent and the structural logic suggest that this is a promising space for the development of a localized financial system based on credit co-operatives, which elsewhere have overcome the SME credit famine and stimulated local saving-investment cycles. Recent Russian developments are placed in the context of earlier experience in structurally similar conditions. These lessons apply to all other former Soviet Union states, as well as other countries.
Topic:
Development, Economics, Humanitarian Aid, and Third World
Political Geography:
Russia

206. BRICSAM and the Non-WTO

Author:
Agata Antkiewicz and John Whalley
Publication Date:
10-2005
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
We discuss recent regional trade and economic partnership agreements involving the large population, rapidly growing economies (BRICSAM: Brazil, Russia, China, India, South Africa, ASEAN, and Mexico). Perhaps 50 out of 300 agreements that exist worldwide involve BRICSAM countries; most are recently concluded and will be implemented over the next few years. Along with extensive bilateral investment treaties, mutual recognition agreements, and other country to country (or region) arrangements they are part of what we term the non-WTO. This paper aims to document and characterize the agreements and analyze their possible impacts. Agreements differ in specificity, coverage and content. In some treaties there are detailed and specific commitments, but these also co-exist with seemingly vague commitments and (at times) opaque dispute settlement and enforcement mechanisms. Whether these represent a partial replacement of the World Trade Organization (WTO) process for newly negotiated reciprocity based on global trade liberalization or largely represent diplomatic protocol alongside significant WTO disciplines is the subject of this paper.
Topic:
Development, Economics, and International Trade and Finance
Political Geography:
Russia, China, India, Asia, South Africa, Brazil, and Mexico

207. Reading Russia Right

Author:
Dmitri V. Trenin
Publication Date:
10-2005
Content Type:
Policy Brief
Institution:
Carnegie Endowment for International Peace
Abstract:
After the fall of Communism, Russia reverted to czarism. But more importantly, Russia embraced capitalism. Although not democratic, Russia is largely free. Property rights are more deeply anchored than they were five years ago, and the once-collectivist society is going private. Indeed, private consumption is the main driver of economic growth. Russia's future now depends heavily on how fast a middle class—a self-identified group with personal stakes in having a law-based government accountable to tax payers—can be created. The West needs to take the long view, stay engaged, and maximize contacts, especially with younger Russians.
Topic:
Economics and Government
Political Geography:
Russia, Europe, and Asia

208. Turkish-Tajik Relations After the Independence

Author:
Pinar Akçali
Publication Date:
03-2005
Content Type:
Journal Article
Institution:
Uluslararasi Iliskiler
Abstract:
This article aims to analyze the relations between Turkey and Tajikistan in the aftermath of the dissolution of the Soviet Union. The relations between these two countries remained rather limited in the period of 1991-1994 because Tajikistan was not Turkic, faced negative economic conditions, went through a civil war, and had closer ties with Iran and Russia. Between 1995 and 2003, however, these relations improved as Turkey better realized the fact that Tajikistan was both an inseparable part of Central Asian geography and critical for regional stability. Furthermore, in this period, Tajik Civil War ended with an important political reconciliation. It is concluded that although there has been a relative improvement in Turkish-Tajik relations since Tajikistan's independence, it has not yet reached to a satisfactory level.
Topic:
International Relations, Economics, and War
Political Geography:
Russia, Iran, Central Asia, Turkey, Asia, and Tajikistan

209. Financial Sector Structure and Financial Crisis Burden: A Model Based on the Russian Default of 1998

Author:
George Mavrotas and Dmitri Vinogradov
Publication Date:
06-2005
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
We consider an overlapping generations model with two production factors and two types of agents in the presence of financial intermediation and its application to the Russian default of August 1998. The paper focuses on the analysis of the consequences of a sudden negative repayments shock on financial intermediation capacity and consequently on the economy as a whole. The model exhibits a 'chain reaction' property, when a single macroeconomic shock can lead to the exhaustion of credit resources and to the subsequent collapse of the whole banking system. To maintain the capability of the system to recover, regulatory intervention is needed even in the presence of the state guarantees on agents' deposits in the banks (workout incentives). We compare the results for an intermediated economy with those derived under the assumption of a market economy, and draw some broad conclusions on the consequences of the crises, which are contingent on the financial sector structure.
Topic:
Development, Economics, Emerging Markets, and International Trade and Finance
Political Geography:
Russia

210. Economic Effects of Free Trade between the EU and Russia

Author:
Pekka Sulamaa and Mika Widgrén
Publication Date:
05-2005
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
This study simulates the economic effects of eastern enlargement of the EU and an EU-Russian free trade area. The main emphasis of the paper is on the effect this would have on the Russian economy. The simulations were carried out with a GTAP computable general equilibrium model, using the most recent GTAP database 6.0 beta, which takes the former Europe agreements between the EU-15 and the eight new Central and Eastern European member states into account. The results confirm the earlier findings that a free trade agreement with the EU is beneficial for Russia in terms of total output but not necessarily in terms of economic welfare when measured by equivalent variation. The main reason behind this is the deterioration that would occur in Russia's terms of trade. Improved productivity in Russia would, however, make the free trade agreement with the EU advantageous.
Topic:
Economics and International Trade and Finance
Political Geography:
Russia, Europe, and Asia

211. What Iraq and Argentina Might Learn from Each Other

Author:
Anna Gelpern
Publication Date:
06-2005
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
Financial collapse usually triggers a flurry of market, academic, and policy innovation. The Latin American debt crisis of the 1980s produced the Brady Bonds and led to the rise of today's emerging markets. In the late 1990s, crises in Pakistan, Ecuador, and Ukraine helped teach the markets how to restructure international sovereign bonds. Crises in Mexico, Russia, Brazil, Turkey, and throughout East Asia raised doubts about the international system's ability to manage vast and rapid capital flows, and prompted a big-picture reassessment under the rubric “international financial architecture.” This included most famously the sovereign bankruptcy proposals discussed elsewhere in this volume.
Topic:
Development and Economics
Political Geography:
Pakistan, Russia, Turkey, Ukraine, Middle East, East Asia, Brazil, South America, Latin America, and Mexico

212. Western Capital vs. the Russian State: Towards an Explanation of Recent Trends in Russia's Corporate Governance

Author:
Stanislav Markus
Publication Date:
03-2005
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
The literature on corporate governance in Russia stresses the abuse of shareholder rights in the face of various asset-diversion tactics by the management. Attributing this fiasco to a number of structural obstacles and the privatization legacy, the orthodox account fails to incorporate–let alone explain–the recent data demonstrating a qualitative improvement of corporate governance in crucial segments of the Russian economy. This paper disaggregates “corporate governance” into specific institutions and examines their quality at the firm level as well as by sector. The data supporting the analysis is drawn from recent studies by the OECD, UBS Warburg, CEFIR, and other organizations. The causal inference presented in this paper critically evaluates the impact of foreign capital on the improved corporate governance in Russia's blue-chip firms. The paper presents two alternative state-centered scenarios to explain the implementation of internationally accepted standards of corporate governance by Russia's big business.
Topic:
Economics, International Trade and Finance, and Politics
Political Geography:
Russia, Europe, and Asia

213. Competition Law and Policy in the Russian Federation

Publication Date:
11-2004
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
When the Russian Federation began its transition toward a market based economy, promoting competition and regulating anticompetitive behavior - issues never previously needing to be addressed - arose as new and unfamiliar subjects for state policymaking and law enforcement activities. In order to address these issues, the Russian Federation created a competition authority and basic law in 1991, quite early in its transition period. Support for competition was expressed in the 1993 Constitution, as well as in other fundamental legislation. As part of a larger study of regulatory reform, the OECD in 2003 undertook a detailed assessment of Russia fs decade of experience with competition law and policy. The Report concludes that despite early legislation on the issue and strong expressions of support for competition in the laws, the creation and protection of competition on domestic markets has not been a policy priority. Emphasis on rapid privatization limited the scope of pre-privatization restructuring to promote competition and the competition authority has been expected to serve as a general regulator of behavior in markets, assigned to fill legislative gaps and to enforce against a variety of undesirable practices in markets. Overly broad responsibilities and a lack of credible sanctions have significantly limited the impact of the competition laws.
Topic:
International Relations, Economics, and Government
Political Geography:
Russia

214. Economic Survey of the Russian Federation, 2004

Publication Date:
07-2004
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The major economic challenge facing Russia is the achievement of long-term, sustainable growth that would allow for a relatively rapid convergence between living standards in Russia and the OECD economies. The nature of this challenge is largely determined by Russia\'s economic structure. At present, Russia\'s economy is highly dependent on the export of a limited range of natural resources, chiefly hydrocarbons and metals. This presents policymakers with a number of specific problems. In particular, resource dependence makes the Russian economy especially vulnerable to external shocks. It is therefore difficult to overstate the importance of prudent macroeconomic policies, especially as the budget relies heavily on resource taxes and is thus influenced by volatile energy prices. Hence, exemplary fiscal discipline, in particular, is crucial to reducing Russia\'s vulnerability to commodity-price cycles. Yet while resource dependence brings with it certain macroeconomic risks, economic performance will continue to depend to a great extent on the performance of resource-exporting sectors for the foreseeable future. This makes reform of the natural gas sector an urgent priority. In the absence of substantial reform, the gas industry, which is critical to both exports and the domestic economy, could well stagnate or decline.
Topic:
International Relations, Development, and Economics
Political Geography:
Russia

215. Well Being and Unemployment in Russian in the 1990's: Can Society's Suffering Be Individuals' Solace?

Author:
Andrew; Gaddy Eggers
Publication Date:
04-2004
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
This paper studies the effect of regional unemployment rates on subjective well-being in post-Soviet Russia. Research conducted in Europe and the United States has documented that higher unemployment rates lead to lower reported life-satisfaction. By contrast, our Russian study finds a small but significant effect in the other direction. We estimate that du ring the period of our study (1995-2001), each percentage point increase in the local unemployment rate was correlated with the average well-being of people in the region increasing by an amount equivalent to moving 2% of the population up one level in life satisfaction measured on a five-point scale. Our intuition is that the so-called comparison effect drives this result: when individuals observe their peers suffering in a troubled economy, they lower their standards of what is good enough. All else equal, they thus perceive themselves to be better off in worse times. In highlighting the dependence of subjective well-being scores on expectations and reference groups, we sound a note of caution against using happiness data from economies in crisis to draw macroeconomic policy conclusions.
Topic:
Economics and Human Welfare
Political Geography:
Russia, United States, Europe, Asia, and Soviet Union

216. Economic Prospects for Kaliningrad: Between EU Enlargement and Russia's Integration into the World Economy

Author:
Evgeny Vinokurov
Publication Date:
06-2004
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
The Kaliningrad oblast of Russia is currently an important focal point of discussions between the European Union and Russia. Although small in terms of geography and population, Kaliningrad has grown in importance due to the EU enlargement process. Since the break–up of the Soviet Union, the oblast has become an exclave of Russia, and it is now set to also become an enclave within the EU. This paper examines the state of Kaliningrad's economy and trade. The economic crisis that took place in Russia in the 1990s had severe consequences for Kaliningrad, as old patterns of production and trade were disrupted. Since 1999, however, the regional economy has grown with impressive speed. Kaliningrad's Special Economic Zone (SEZ) status has played a crucial role in determining its new patterns of production and trade specialisation. The paper argues that the SEZ regime has made the region's economic growth faster but also vulnerable.
Topic:
Economics and International Trade and Finance
Political Geography:
Russia, Europe, and Asia

217. India's energy needs

Author:
Nick Hordern
Publication Date:
12-2004
Content Type:
Policy Brief
Institution:
Lowy Institute for International Policy
Abstract:
India's exploding demand for energy is confronting New Delhi with two important dilemmas, one internal and one external. India's internal dilemma is that to satisfy its energy needs, India must not only expand but also renovate its energy sector, a huge task. Moreover, New Delhi must balance accelerating the necessary reform of this sector with the need to avoid alienating important domestic constituencies. The external dilemma derives from the fact that India will only be able to meet part of its increased energy demand from its own domestic resources, and therefore will be increasingly forced to rely on energy imports. India is trying to secure its energy supplies in a hostile geo-political climate, since New Delhi's parlous relations with its neighbours make energy cooperation difficult. The resultant fears regarding the vulnerability of India's external sources of energy chime with a core principle of New Delhi's political culture, swadeshi (self-sufficiency), whose influence, while waning, retains its potency. Concerns regarding energy security are particularly prevalent in the case of oil, where India's dependence on imports is becoming acute. The proximity of the Persian Gulf to India's industrialised northwest makes it the main source of growing oil imports. But this in turn increases India's reliance on the unstable Gulf. In order to reduce this risk New Delhi will seek out oil from new energy provinces in the Atlantic Basin, Sudan, Russia and South East Asia. It will also turn to a new energy source - gas - and more imports of liquefied natural gas (LNG) will be one result. India's energy needs have implications for Australia. India's growing demand for energy will see coal continue to dominate the energy mix, and as a result India's demand for imported coking coal, including from Australia, is also set to grow. At the same time, India's quest for diversity of supply means that at least some of India's increased LNG imports are likely to be Australian.
Topic:
Economics, Energy Policy, and International Cooperation
Political Geography:
Russia, Sudan, India, Asia, New Delhi, Australia, and Southeast Asia

218. The Language of Democracy: Vernacular Or Esperanto? A Comparison between the Multiculturalist and Cosmopolitan Perspectives

Author:
Daniele Archibugi
Publication Date:
12-2004
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
Will Kymlicka has argued “democratic politics is politics in the vernacular.” Does it imply that democratic politics is impossible in a multilingual community, whether at the local, national, regional or global level? This paper discusses this assumption and maintains that democratic politics should imply the willingness of all players to make an effort to understand each other. Democratic politics imply the willingness to overcome the barriers to mutual understanding, including the linguistic ones. Any time that there is a community of fate, a democrat should search for methods that allow deliberation according to the two key conditions of political equality and participation. If linguistic diversity is an obstacle to equality and participation, some methods should be found to overcome it, as exemplified by the Esperanto metaphor. The paper illustrates the argument with four cases of multi-linguistic political communities: a) a school in California with English-speaking and Spanish-speaking students; b) the city of Byelostok in the second half of the nineteenth century, where four different linguistic communities (Polish, Russian, German and Yiddish) coexisted. This led Markus Zamenhof to invent Esperanto; c) the linguistic problems of the Indian state, and the role played by English – a language unspoken by the majority of the Indian population in 1947 – in developing Indian democracy; and d) the case of the European Parliament, with twenty languages and a wealth of interpreters and translators.
Topic:
Democratization, Economics, and Politics
Political Geography:
Russia, Europe, India, California, and Germany

219. CERI: Barter and Inter-business Transactions in Russia: Trade Normalization in View after the Ruble Crisis of 1998?

Author:
Caroline Dufy
Publication Date:
09-2003
Content Type:
Working Paper
Institution:
Centre d'Etudes et de Recherches Internationales
Abstract:
Barter was a prominent issue in public debate during the 1990s in Russia: it prompted a more overall reflection on the nature of the Russian economy and the aim pursued by economic reforms. These major issues shaped a number of divisions: the government opposition portrayed barter as one of the pernicious effects of economic policies that gave priority to finance to the detriment of the national productive sphere. For others, it was to be interpreted as the legacy of the Soviet industrial sector and its lack of competitiveness.
Topic:
Development, Economics, and International Trade and Finance
Political Geography:
Russia, Europe, and Asia

220. Chechen Militia Threaten Increased Terrorism

Author:
Tamara Makarenko
Publication Date:
05-2003
Content Type:
Working Paper
Institution:
Centre for the Study of Terrorism and Political Violence, St. Andrews University, Scotland
Abstract:
Chechen resistance movements have reorganised to adjust to the post 11 September 2001 security environment, and appear to be adopting more lethal terrorist tactics. Tamara Makarenko reports.
Topic:
Security, Economics, and Terrorism
Political Geography:
Russia, Europe, Asia, and Moscow

221. The Federal Budget and the Regions

Author:
A.M. Lavrov
Publication Date:
01-2003
Content Type:
Working Paper
Institution:
EastWest Institute
Abstract:
Improvement of the financial relations between the Federation and the regions still remains quite an urgent problem. The Concept of Reforming Inter budgetary Relations in the Russian Federation in 1999 — 2000 is being implemented; Russia's Finance Ministry has developed the Concept of Reforming Budget Federalism in the Russian Federation to 2005, which will soon be approved by the Government; a special section on interbudgetary relations has been included in the Main Long- Term Trends of Socio-Economic Policy of the Russian Federation Government program, drafted by the Strategic Research Center.
Topic:
Economics, International Trade and Finance, and Political Economy
Political Geography:
Russia, Europe, and Bosnia

222. Decision Making in the Field of Security - Formal and Informal Procedures and Mechanisms in the Russian Federation

Author:
Vladimir Shustov
Publication Date:
08-2003
Content Type:
Working Paper
Institution:
Geneva Centre for Security Sector Governance (DCAF)
Abstract:
To start with, I would like to note that the degree to which the civil society influences state national security policies depends on political and social and economic character of the state and, accordingly, on relationships between various branches of power and the society itself represented by its organizations, mass media and individuals.
Topic:
Civil Society, Economics, and Politics
Political Geography:
Russia

223. National Security Decision Making, Formal vs. Informal Procedures and Structures: Case Study 1 - The Former Soviet Union, Russia and Ukraine

Author:
Yuri Nazarkin
Publication Date:
08-2003
Content Type:
Working Paper
Institution:
Geneva Centre for Security Sector Governance (DCAF)
Abstract:
The current Russian security decision-making system represents a particular interest, because Russia today is at a crucial stage of its development. There are a number of factors that are shaping its system: new security dimensions and requirements, traditional and innovative approaches towards security, political interests of various groupings, economic interests of big corporations, politicians' personal ambitions. At the same time the past experience puts a noticeable impact on the current decisionmaking mechanisms. That is why I am going to start with the Soviet period.
Topic:
Communism, Development, and Economics
Political Geography:
Russia, Ukraine, and Soviet Union

224. A Decomposition Analysis of Regional Poverty in Russia

Author:
Anthony Shorrocks and Stanislav Kolenikov
Publication Date:
10-2003
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper applies a new decomposition technique to the study of variations in poverty across the regions of Russia. The procedure, which is based on the Shapley value in cooperative game theory, allows the deviation in regional poverty levels from the all- Russia average to be attributed to three proximate sources; mean income per capita, inequality, and local prices. Contrary to expectation, regional poverty variations turn out to be due more to differences in inequality across regions than to differences in real income per capita. However, when real income per capita is split into nominal income and price components, differences in nominal incomes emerge as more important than either inequality or price effects for the majority of regions.
Topic:
Economics and Poverty
Political Geography:
Russia, Europe, and Asia

225. Quo Vadis? Inequality and Poverty Dynamics across Russian Regions

Author:
Ruslan Yemtsov
Publication Date:
09-2003
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper analyses regional data on inequality and poverty in Russia during 1994-2000 using published series from the regionally representative Household Budget Survey. The paper finds that the share of inequality in Russia coming from the between-regions component is large (close to a third of the total inequality), growing, and accounts for most of the increase in national inequality over 1994-2000. The paper demonstrates an absence of interregional convergence in incomes across Russian regions using various techniques. On the other hand, the paper finds evidence of convergence in inequality within regions, trended towards an internationally high level. Based on these two findings, the paper projects dynamics of inequality and poverty in Russia over a ten-year time horizon. The projections show that if the observed trend continues, by 2010 the absolute majority of Russia's poor will be concentrated in a few permanently impoverished regions, while relatively more affluent regions will become virtually free of poverty. Finally, the paper relates fluctuations in inequality within regions to a set of factors classified into four broad categories: endowments and initial conditions, preferences, policies, and shocks. Among these factors short-run fluctuations of the unemployment rate are revealed as significant and strong signals of inequality.
Topic:
Demographics, Economics, and Poverty
Political Geography:
Russia, Europe, and Asia

226. Who Pays Indirect Taxes in Russia?

Author:
André Decoster and Inna Verbina
Publication Date:
08-2003
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The interplay of a differentiated indirect tax structure and the variation in expenditure patterns across households, leads to a possibly unequal distribution of indirect tax liabilities across the population. This paper uses the ninth round of the RLMS survey to assess the distributional consequences of the two major components of the indirect tax system: VAT and excise taxes. The global indirect system can be considered to be progressive overall, according to the Kakwani index. Decomposition into constituent terms shows that this is due not only to a progressive VAT structure, but also to progressive excise taxes. This surprising result is mainly explained by the progressivity of the excise tax on car fuel, but might also be sensitive to peculiarities in the data about alcohol consumption.
Topic:
Development, Economics, and Government
Political Geography:
Russia

227. Social and Economic Decline as Factors in Conflict in the Caucasus

Author:
Svetlana Glinkina and Dorothy Rosenberg
Publication Date:
02-2003
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
We argue that the conflicts in the Caucasus are the result of the abrogation by the elite of the earlier, Soviet era, social contract. This process was accompanied by the collapse of the formal economy; evidenced by huge national income compression, falling public goods provision, and growing inequality and poverty. In the absence of state provision of basic amenities and governance, ordinary people are compelled to fall back on kinship ties. Declining standards of governance facilitate state-sponsored corruption and criminality in a setting where the shadow economic activity is increasingly important to individual survival strategies. Oil pipelines and the right to control the transit of goods both legal and illegal also underlie conflict in the region. Criminality has replaced ethnicity as the major motivation for conflict and conflict per se has become a lucrative source of income.
Topic:
Economics, Ethnic Conflict, and Poverty
Political Geography:
Russia, Europe, Asia, and Soviet Union

228. Russia's Maternal and Infant Health Crisis: Socio-Economic Implications and the Path Forward

Author:
Stephen M. Massey
Publication Date:
12-2002
Content Type:
Policy Brief
Institution:
EastWest Institute
Abstract:
Today, fewer than one in three Russian newborns is healthy, disease rates among Russian children are surging, and shrinking access to quality family planning and prenatal care has worsened the state of women's reproductive health across Russia. The health of Russia's infants and children is especially significant given the country's shrinking population and the mounting problems of infectious disease, rural poverty, illegal narcotics, and alcohol abuse – all contributing factors to poor birth outcomes. The long-term economic impact of unhealthy children born in the past decade is already a serious limiting factor to Russia's emergence as a strong economic partner and international actor. Many infant deaths and childhood illnesses could be prevented with expanded investments in infrastructure and education, improved access to quality care, and reform of Russia's healthcare sector – each of which is too costly for Russia to finance on its own. Untapped opportunities also exist for collaboration between Russian, European, and American civic groups, healthcare experts, scientists, and policy leaders that would have a positive impact on maternal and child health in Russia and beyond.
Topic:
Economics, Human Welfare, and International Cooperation
Political Geography:
Russia, Europe, and Asia

229. Russia's Southern Regions: Threats and Opportunities

Author:
Robert Orttung
Publication Date:
06-2002
Content Type:
Policy Brief
Institution:
EastWest Institute
Abstract:
Instability in Russia's southern regions poses a threat to the continuation of the country's overall political and economic reform, and to regional stability in Central Eurasia. These regions, which already possess Russia's most fragile local economics, face a variety of problems emanating from the weak and failing states to their immediate south. Most visibly, there is the threat of terrorism, an increasing flow of illegal narcotics from producers in Afghanistan, an influx of contraband goods that wipe out Russian jobs, and illegal immigration. With few resources and extensive corruption among key officials, Russia's southern regions are poorly equipped to deal with these problems. Developing mutually beneficial trade links between Russia's southern regions and its neighbors in Central Asia, China, and Mongolia can mitigate instability and economic stagnation in this region, help to rebuild regional economies, generate income, and better enable governments to provide security and basic human services to their people. The West can support these developments as well as help combat organized crime, target corruption, and improve border security.
Topic:
Security, Economics, International Cooperation, and Terrorism
Political Geography:
Afghanistan, Russia, China, Europe, Mongolia, and Asia

230. Determinants and Repercussions of the Composition of Capital Inflows

Author:
Mark Carlson and Leonardo Hernandez
Publication Date:
01-2002
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
The Mexican, Asian, and Russian crises of the mid- and late 1990s have renewed the interest among policymakers in the determinants and effects of private capital flows. This paper analyzes whether policies can affect the composition of capital inflows and whether different compositions aggravate crises. We find that, while fundamentals matter, capital controls can affect the mix of capital inflows that countries receive. We find that during the Asian crisis countries with more Yen denominated debt faired worse, while during the Mexican crisis larger short-term debt stocks increased the severity of the crisis.
Topic:
Conflict Resolution and Economics
Political Geography:
Russia, Asia, and North America

231. The Argentine Implosion

Author:
Luigi Manzetti
Publication Date:
11-2002
Content Type:
Working Paper
Institution:
The North-South Center, University of Miami
Abstract:
In December 2001, Argentina recorded the world's largest default ever, as it failed to honor payments on its US$132 billion foreign debt. Since then, five presidents have been in power, the Argentine peso has been devalued by 120 percent, and the banking system has virtually collapsed, dragging the economy into a depression. The gross domestic product (GDP) contracted 16.3 percent in the first quarter of 2002. Argentina's per capita income has become one of the worst in Latin America, and, as a result, more than one-third of its people live under the poverty line. 1 Argentines' confidence in their elected officials has disappeared. By most accounts, the country has literally imploded to a degree that has no precedent in Latin America's contemporary history. This is particularly bewildering, considering that only 10 years ago Argentina was hailed around the world as a model of successful economic reforms, with standards of living that were not only the highest in the region but comparable to those of some southern European countries. How could Argentina go from role model to international outcast so quickly? Some place the blame on external shocks created by the financial crises in Mexico (1995), Indonesia (1997), Thailand (1998), and Russia (1998). Others say the cause of the problem was misguided policy advice from the International Monetary Fund (Stiglitz 2002). Yet, most analyses ascribe much of the trouble to the Convertibility Law's fixed exchange rate policy adopted in 1991.
Topic:
Economics, Government, and International Trade and Finance
Political Geography:
Russia, Indonesia, Argentina, South America, Latin America, Mexico, and Thailand

232. Divergence and dispersion in the Russian economy

Author:
Per Botolf Maurseth
Publication Date:
12-2002
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
In the Soviet Union, one result of central planning was geographical decentralisation of economic activity to a large set of remote peripheral regions. For Russian post-Soviet regions an important question is whether centripetal market forces may alter the pre-existing industrial location. This paper addresses some aspects of regional economic development in Russia. The Russian economic landscape differs from what is common in market economies. Peripheral regions are generally richer than the average. During the 1990s, differences in gross regional product increased. These developments have also meant less spatial concentration of economic activity. During the last half of the 1990s, economic growth was higher in central regions than in the peripheries. If these trends continue, the Russian economic landscape will alter significantly in the future, with income per capita, total income and population being concentrated in economic central regions.
Topic:
Development, Economics, and Industrial Policy
Political Geography:
Russia and Soviet Union

233. Measuring the Non-Observed Economy

Author:
Derek Blades and David Roberts
Publication Date:
11-2002
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Strictly speaking, the Gross Domestic Product (GDP) is only a measure of economic activity, but in practice it is often used to compare the relative wellbeing of countries as well as their overall economic performance. To measure the latter, users normally look at the rates of growth of GDP, while for comparing relative wellbeing the levels of GDP percapita are used. The absolute level of GDP is also used for calculating policy-relevant indicators such as the ratio of government deficit to GDP, the ratio of R expenditure to GDP and the ratio of carbon dioxide emissions to GDP.
Topic:
Economics and International Organization
Political Geography:
Russia

234. Strengthening Financial Sector Governance in Emerging Markets

Author:
Robert Litan, Michael Pomerleano, and V. Sundararajan
Publication Date:
07-2002
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
Policymakers and analysts are still sifting through the wreckage of the Asian financial crisis of 1997 and the subsequent crises in Russia, Turkey, and Argentina to discern key lessons so that similar crises will not recur. Some lessons are by now well understood. Pegged exchange rates can encourage excessive borrowing and expose countries to financial collapse when foreign exchange reserves run dry. Inadequate disclosures by both private companies and public bodies can lead to similar dangers. Although many factors undoubtedly contributed to these crises, it is now widely recognized that each suffered from a failure in “governance,” and in particular a failure in governance in their financial sectors. Accordingly, the World Bank Group, the International Monetary Fund (IMF), and the Brookings Institution devoted their fourth annual Financial Markets and Development Conference, held in New York from April 17-19, 2002, to the subject of financial sector governance in emerging markets. This conference report summarizes some of the highlights of the conference, whose full proceedings will be published as a Brookings book in the fall of 2002.
Topic:
Economics, Emerging Markets, Government, and International Trade and Finance
Political Geography:
Russia, New York, Turkey, Asia, and Argentina

235. Russia's Decline and Uncertain Recovery

Author:
Thomas E. Jr. Graham
Publication Date:
05-2002
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
For much of the first decade after the collapse of the Soviet Union, the issue of reform—of transition to free-market democracy—dominated discussions of Russia in Russia itself and in the West. Russian president Boris Yeltsin advocated reform; Western governments declared their support and offered their assistance. This was particularly true of the U.S. government. President Clinton's administration came into office in 1993 determined to assist Russia in its transformation into “a normal, modern state—democratic in its governance, abiding by its own constitution and by its own laws, market-oriented and prosperous in its economic development, at peace with itself and the rest of the world,” as deputy secretary of state Strobe Talbott, the chief architect of the U.S. administration's Russia policy, was wont to put it.
Topic:
Economics and Government
Political Geography:
Russia, United States, Europe, Asia, and Soviet Union

236. Chirac's Blind Date with History

Author:
Simon Serfaty, Christina V. Balis, Pierre Messerlin, and Chris Wiley
Publication Date:
06-2002
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies
Abstract:
The French elections held during the past eight weeks—first for the presidency and then for the National Assembly—were the most significant elections held in France since 1981. On the whole, their outcome is good for France, for Europe, and for the United States. They restore a political coherence that had been lacking during seven of the last nine years, when the French political system lived under the strained conditions of political cohabitation (1993–1995 and 1997–2002). Moreover, by renewing the primacy of the French presidency, these elections enable Jacques Chirac to assert his leadership during the decisive years that loom ahead for the European Union (EU), as well as for its relations with the United States within the North Atlantic Treaty Organization (NATO). Finally, these elections also confirm Europe's political drift to a center-right that the elections in Germany scheduled for September 23 are likely to make complete (Euro-Focus, September 15, 2002).
Topic:
Economics, Politics, and Terrorism
Political Geography:
Russia, United States, Europe, and France

237. Bigger Europe, Smaller Agenda

Author:
Simon Serfaty, Christina V. Balis, George Handy, and Georgeta Pourchot
Publication Date:
02-2002
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies
Abstract:
“More Europe in every area” may sound like an ill-chosen motto for a six-month presidency facing an already demanding and inflated agenda. It is reflective of a concern, however, not to expand the current list of priorities to new initiatives that would risk the fate of past abortive attempts. Avoiding new confrontations, while ensuring the smooth pursuit of ongoing reforms, has become Spain's principal goal during its presidency in the first half of 2002.
Topic:
Economics, Politics, and Terrorism
Political Geography:
Russia, United States, and Europe

238. The Foreign Sales Corporation: Reaching the Last Act?

Author:
Gary Hufbauer
Publication Date:
11-2002
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
Some trade disputes—like long Russian novels—never seem to end. The United States, Europe, and other trading nations have disputed the taxation of export earnings since the 1970s. To understand why the Foreign Sales Corporation (FSC) dispute is so hard to resolve, we must start with a historical tour.
Topic:
Economics and Political Economy
Political Geography:
Russia, United States, and Europe

239. At the Crossroads of Post-Communist Modernisation: Russia and China in Comparative Perspective

Author:
Linda Jakobson and Christer Pursiainen
Publication Date:
02-2001
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
“Modernity ends when words like progress, advance, development, emancipation, liberation, growth, accumulation, enlightenment, embetterment, avant-garde, lose their attraction and their function as guides to social action.” By this definition, Russia and China are both still undertaking extensive modernisation – though by very different means. Why have Russia and China chosen such different paths for their post-communist transitions? How do their strategies differ, and how are they interrelated? When – at what junctures - were the crucial choices made?
Topic:
Development, Economics, and Politics
Political Geography:
Russia, China, Europe, and Asia

240. Two Reluctant Regionalizers? The European Union and Russia in Europe's North

Author:
Hiski Haukkala
Publication Date:
01-2001
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
It has become something of a cliché to argue that the break-up of the Soviet Union in 1991 resulted in dramatic changes in the unfolding of political space in the 1990s. Yet this was especially true in the case of the then European Community (EC) and its relations with the Soviet Union/Russian Federation. During the Cold War, the relations between the EC and the USSR were practically non-existent. The ascension of Mikhail Gorbachev and the period of perestroika and glasnost resulted, however, in a gradual rapprochement between the two parties. The creation of these new ties was formalized in the signing of a Trade and Cooperation Agreement (TCA) between the EC and the USSR, which was, however, in effect signed with an already crumbling Soviet Union as it took place as late as 21 December 1989.
Topic:
Democratization, Development, Economics, and Regional Cooperation
Political Geography:
Russia, Europe, Asia, and Soviet Union

241. Urban and Industrial Pollution Programs: Russia Case Study

Author:
Matthew Addison, Mark Hodges, Steven Gale, and Nick Wedeman
Publication Date:
07-2001
Content Type:
Working Paper
Institution:
United States Agency for International Development
Abstract:
Since the official dissolution of the Soviet Union in 1991, Russia has moved forward to make the difficult transition to open markets and more democratic institutions. The journey toward a complete restructuring of the Russian economy and an adoption of wide-ranging political reforms has been perilous. Political instability continues, crime and corruption have become more widespread, and economic conditions show little sign of improving quickly. Efforts to privatize state-held industries, initially seen as wildly successful, have now met with resistance, and full citizen involvement in government is far from complete.
Topic:
Development, Economics, Environment, Human Welfare, and Science and Technology
Political Geography:
Russia, Europe, and Asia

242. Strengthening Local Administration of Social Assistance in Russia

Author:
Raymond J. Struyk and L. Jerome Gallagher
Publication Date:
11-2001
Content Type:
Working Paper
Institution:
Urban Institute
Abstract:
A hallmark of the administration of social assistance under the socialist regimes in Eastern Europe and the USSR was the universal nature of eligibility for benefits, either to all citizens or to categories of deserving citizens, e.g., the physically handicapped. During the transition period since the collapse of the Soviet Union, the Russian Federation has taken limited steps to improve the targeting of benefits. The challenge to improvement is acute because the administration of the great majority of programs rests with agencies of local government. The question addressed here is how amenable local program administration is to improved targeting and more progressive program administration in general. Presented is an analysis of the results of assessments of two pilot programs implemented in two Russian cities in 2000–2001. The “school lunch pilot” introduced means testing in the school lunch program on a citywide basis; eligible families receive cash payments and all children pay the same price for their lunches in cash. The “jobs pilot” is a new, local means-tested program that provides cash support to families while unemployed workers search for work; continued receipt of funds is conditional on a minimum job search effort. We find that both programs were successfully implemented and that there was little resistance to the sharper targeting. On the other hand, a variety of problems with program administration were identified—problems that need to be addressed if program integrity and credibility are to be maintained.
Topic:
Economics, Government, and Human Welfare
Political Geography:
Russia, Europe, and Asia

243. Russian Nonprofits as Contracted Providers of Municipal Social Services: Initial Experience

Author:
Raymond J. Struyk and Kirill Chagin
Publication Date:
08-2001
Content Type:
Working Paper
Institution:
Urban Institute
Abstract:
In the Russian Federation the delivery of social services to deserving population groups is mostly the responsibility of municipalities and other local governments. Services are delivered by municipal agencies. One way to inject competition into the delivery system is for local government to hold competitions to contract for social service delivery. The competitions can be open to nonprofit organizations (NPOs), some of which have been providing assistance in recent years to needy individuals and families similar to those that would be contracted.
Topic:
Economics, Human Welfare, and Non-Governmental Organization
Political Geography:
Russia, Europe, and Asia

244. Turkey And The Bush Administration: The Question Marks

Author:
Alan Makovsky
Publication Date:
03-2001
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
Turkey's economic crisis is naturally the leading issue in bilateral U.S.-Turkish relations, and it is almost certainly topping the agenda of today's meetings of Foreign Minister Ismail Cem with Vice President Richard Cheney and other senior officials. Of course, these meetings pose the difficult question of how much Washington should do, if anything, to bail out its strategically vital ally. But this is only one of several uncertainties characterizing U.S.-Turkish relations in the early days of the Bush administration. Because so much of Turkey's importance to the United States derives from its critical strategic location, bilateral relations are greatly affected by U.S. policies toward other states in Turkey's region. Of most concern to Turkey will be the evolution of Bush administration policy toward Iraq, Iran, and Russia, and also toward Europe's nascent bid to develop an autonomous security capacity.
Topic:
International Relations, Security, Defense Policy, Economics, and Energy Policy
Political Geography:
Russia, United States, Iraq, Europe, Iran, Washington, Turkey, and Middle East

245. The Place of the Defense Industry in National Systems of Innovation

Author:
Kenneth Flamm, Ann Markusen, Judith Reppy, John Lovering, Claude Serfati, Andrew D. James, Eugene Cobble, Judith Sedaitis, Corinna-Barbara Francis, Dov Dvir, Asher Tishler, and Etel Solingen
Publication Date:
04-2000
Content Type:
Working Paper
Institution:
The Judith Reppy Institute for Peace and Conflict Studies
Abstract:
A review of current and forthcoming developments in the European defense industry (which here means mainly Britain, France, Germany, and Italy) would lead, I believe, to some fairly clear conclusions. The relationship between sectoral and national (including regional) economic development is changing profoundly. This is above all because the defense industry currently represents a major and extremely significant instance of globalization. However, this is not the kind of globalization described in many summaries.
Topic:
Security, Defense Policy, Economics, and Industrial Policy
Political Geography:
Russia, United States, China, United Kingdom, Middle East, and France

246. Prospects for WTO Trade Negotiations After Seattle: Foreign Strategies and Perspectives

Publication Date:
05-2000
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
In a recent conference, trade experts identified three primary reasons the World Trade Organization (WTO) failed to launch a new trade Round at its December 1999 Ministerial. First, leading members were unable to resolve differences on critical issues prior to the gathering. In addition, many developing countries and nongovernmental organizations were more assertive than they had been at previous conferences. Finally, in recent years, the WTO has expanded the range of issues it addresses, which has made efforts to reach a consensus on any point more difficult. According to the speakers, as a result of the acrimonious Ministerial, the WTO has suffered a substantial loss of credibility, which will impair efforts to launch a new Round in the near term. There is no immediate alternative to strong US leadership, and WTO negotiations will be more complicated because developing countries and nongovernmental organizations will be more inclined to resist trade liberalization efforts that they believe do not advance their interests. Experts at the conference offered a variety of assessments regarding the course the WTO might choose to follow this year. The majority argued that if the trade body is seeking to rebuild confidence, it could continue with scheduled meetings on agriculture and services and use the time to rebuild confidence. A minority, however, held that the forum is too fractured to make progress, thus talks would only undermine the already declining prestige of the trade body. The experts identified several long-run challenges that the WTO will probably need to address to be an effective decisionmaking institution, including: Bridging the developed-developing country gap Costa Rica, Mexico, and South Africa generally support trade liberalization and have credibility among developed and developing states; thus they are in a position to meld the interests of the two sides. Enacting institutional reforms The organization's expansive agenda and large membership require that it adopt policies that facilitate decisionmaking, especially before new members such as China and Russia join. The trade body may try to increase transparency to promote greater trust in its procedures. Also, to avoid protracted and bitter selections such as the forum suffered last year, the WTO could review its procedures for electing a new director general. Managing the backlash against globalization Supporters of freer trade could launch a massive educational program to highlight the gains for all countries from expanded trade and to counter the dire assertions made by nongovernmental organizations (NGOs).
Topic:
Foreign Policy, Development, Economics, and International Trade and Finance
Political Geography:
Russia and China

247. Local Administration of Social Assistance Programs in Russia

Author:
Raymond J. Struyk and Burton Richman
Publication Date:
10-2000
Content Type:
Working Paper
Institution:
Urban Institute
Abstract:
Competent administration is fundamental to successful reform of social assistance programs in transition economies. Only with such administration is there assurance that benefits are being delivered as intended in enabling legislation. Moreover, the perceived efficiency and fairness of administration influences the public's views of the new programs. In the Russian Federation local governments have primary responsibility for the administration of social assistance programs enacted by all levels of government
Topic:
Economics, Government, and Human Welfare
Political Geography:
Russia, Europe, and Asia

248. Cultural Contradictions of Post-Communism: Why Liberal Reforms Did Not Succeed in Russia

Author:
Nina Khrushcheva
Publication Date:
05-2000
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
One goal of Russia's economic reforms during the last ten years has been to establish a new class of businessmen and owners of private property—people who could form the foundation for a new model post-Soviet citizen. However, the experience of this post-communist economic “revolution” has turned out to be very different from the original expectations. For as people became disillusioned with communism due to its broken promises, the words “democracy” and “reform” quickly became equally as unbearable to large sectors of the Russian public after 1991. Such disillusion was achieved in less than ten years—a record revolutionary burnout that would be the envy of any anti-Bolshevik.
Topic:
Communism, Democratization, Development, Economics, and Government
Political Geography:
Russia, Europe, Asia, and Soviet Union

249. Russian Federal Budget and the Regions

Author:
Alexei Makushkin
Publication Date:
11-1999
Content Type:
Working Paper
Institution:
EastWest Institute
Abstract:
In the period of the Soviet rule public finances formed the basis of the national economy and, consequently, were the key factor determining the relationship between the Central power and the regions. Beginning with the proclamation of the sovereignty of the Russian Federation in 1 99 1 the role of the Center and the regions changed. The State has reduced its influence on the national economy, largely due to the reduction of the share of the GDP reallocated through the Central budgetary system. In 1 999 the volume of the budgetary reallocated product made only 14- 1 5% of the total. The relationship between the federal budget and the system of the regional finances became very complicated and oblique. The state economic sector has decreased, power has become decentralized in Russia.
Topic:
Security, Economics, and Regional Cooperation
Political Geography:
Russia, Europe, Asia, and Soviet Union

250. Federalism in Russia: How Is It Working

Publication Date:
02-1999
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
This conference was sponsored by the National Intelligence Council and the Bureau of Intelligence and Research of the US Department of State. John Battilega of the Science Applications International Corporation served as rapporteur. The views expressed in this conference summary are those of individuals and do not represent official US Government positions or views.
Topic:
Security, Economics, and Government
Political Geography:
Russia and United States